Last week Finance Minister Pravin Gordhan released the National Budget which is a plan on what income the government has and its plans for spending this income. It is a good idea to have a look at not only how the National Budget will influence your budget directly, with additional taxes, but use it to plan your own personal budget.

The main themes for consumers for the budget are savings and debt.

“These are two very important themes for everyone,” says Eunice Sibiya, Head of Consumer Education at FNB.

In order to encourage savings, there will be provision for tax exempt savings accounts.

“Without savings you won’t have a buffer to help you in emergencies or for your future,” says Sibiya. “If you haven’t got any savings start right now, and if you have started saving, look and see where you need to bolster it.”

The government itself is focussing on cutting waste out of spending.

“Take a hard look at your own budget and identify where you can cut down on your own wasteful or unnecessary spending,” says Sibiya. “This can be allocated towards paying down your debt and towards saving, instead of instant gratification on entertainment or the latest clothing.”??

There are a few areas where National Budget will have a direct impact on your own spending, which you need to take note of, says Sibiya.

Petrol will go up a further 20 cents due to additional taxes in April.

“This addition, along with recent petrol hikes will make petrol very expensive,” says Sibiya.”This means that you will need to allocate more of your budget to transport whether it is your own car or travelling on public transport.”

Another item which may affect your pocket is the increase of taxes on alcohol and cigarettes.

There is some good news though.

“If you earn R250 000 or below a year, you will be getting a tax break, which means that you will be paying less income tax and have a bit more disposable income on your hands,” says ??Sibiya. “But put this away into savings or paying back your debt, rather than thinking that you suddenly have a bit more money to spend.”

Every South African, not just the government, needs to watch their spending, start paying back debt that they owe and start saving. Monthly budgeting and financial discipline will help you manage your finances better